ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Market Leader,'s annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2013 was -69.60%.
As of today (2024-05-19), Market Leader,'s WACC % is 0.00%. Market Leader,'s ROIC % is 0.00% (calculated using TTM income statement data).
Market Leader, earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Market Leader, ROIC % Historical Data
The historical data trend for Market Leader,'s ROIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Market Leader,'s ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Market Leader,'s ROIC % Distribution in the Software Industry
For the Software industry and Technology sector, Market Leader,'s ROIC % distribution charts can be found below:
* The bar in red indicates where Market Leader,'s ROIC % falls into.
Market Leader, ROIC % Calculation
Market Leader,'s annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2012 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Mar. 2013) data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Market Leader, (FRA:HDT) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Market Leader,'s WACC % is 0.00%. Market Leader,'s ROIC % is 0.00% (calculated using TTM income statement data).
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Market Leader, ROIC % Related Terms
Thank you for viewing the detailed overview of Market Leader,'s ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Market leader, Inc., founded in 1999 was incorporated in the State of Washington. The Company provides innovative online technology and marketing solutions for real estate professionals across the United States and Canada. The Company serves 125,000 real estate agents, brokerages and franchisors, offering complete end-to-end solutions that enable them to grow and manage their businesses. The Company's subscription-based real estate marketing software and services helps customers generate a steady stream of prospects, plus provide the systems and training they need to convert those prospects into clients. In addition, its consumer real estate sites, including www.realestate.com, give its customers access to millions of future home buyers and sellers. The Sales and marketing expenses consist mainly of advertising, as well as salaries, commissions and related expenses for its sales, marketing and customer support staff. Other expenses include credit card fees and corporate marketing and communications expenses. The Company's competitors include online companies focused on residential real estate, internet media companies, traditional real estate brokerage firms, discounted and non-traditional real estate brokerage firms, and traditional sellers of advertising to real estate professionals. Its business is subject to various laws and regulations relating to Internet commerce and telemarketing, as well as federal and state laws and regulations relating to real estate and mortgage matters.
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